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To: Remember_Salamis
My question is this.....

Who would lose more if China pulled a stunt like that?

If we cut off all financial ties with China and refused to honor the paper they hold because of their manipulation practices, China's economy would crash in a way that would make 1929 look like a picnic

6 posted on 12/09/2003 10:33:37 PM PST by MJY1288 (The Democrats Have Reached Rock Bottom and The Digging Continues)
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To: MJY1288
Who would lose more if China pulled a stunt like that?

In the long run?? ... China does .. IMO, a stunt like this could screw them royally

7 posted on 12/09/2003 10:39:57 PM PST by Mo1 (House Work, If you do it right , will kill you!)
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To: MJY1288
Not really. My point is we could NEVER refuse to honor PRC bank notes. Do you know why the rest of the world pours trillions into our bond and stock markets? because it's the safest investment in the world! We WILL always pay off investors and if that were to ever change, US financial markets would cease to be the center of global finances; Banking would shift bakc towarsd europe and Germany in particular, as it was before WWI and remains strong to this day.

In essence, the US would no longer be the best place to do business.

As for China, people fail to grasp that their "economic vacuum cleaner" isn't just pointed at the US, it's pointed at the rest of Asia as well. Did you know that "rich" Asia, i.e. Japan, Taiwan, and South Korea, and Singapore, are already using China's cheap labor because it even cheap for Asian standards.

As for export markets, China could shift towards the EU. And, it would be implssible to stop all PRC goods from entering the US. Why? becasue of the global supply chain. Chances are, most imports into the US were manufactured in multiple companies, For example, Japanese workers fanufactur high-tech, skill-intensive components for electronics, but then ship those parts to China for assembly before being sent back to Japan for finishing touches before going to Sinapore (Asia's #1 shipping hub) for final shipment. The point is, you cannot remove a cheap labor source like China from OUR economy without removing everone else. And only a tarriff war would do that. And if that happens, the marxist antiglobalizationists win.

So I ask, what do we do???
9 posted on 12/09/2003 11:03:46 PM PST by Remember_Salamis
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To: MJY1288
China's economy would crash in a way that would make 1929 look like a picnic

-------------------

Why?

16 posted on 12/09/2003 11:53:41 PM PST by RLK
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